Wall Street is starting to pay attention to the fact that oil prices have been steadily rising. Some see higher oil prices as a sign of a robust economy, but other analysts are worried that the higher prices will result in pain at the pump, eventually leading to a slowdown in the economy. Financial advisor Matt Badiali believes that during the Fall, oil prices will continue to rise. He feels that the situation in Iran is going to be the main driver for higher oil prices. The United States made a deal with Iran in 2015 regarding Iran and its nuclear program. Iran was then able to trade freely and export its oil. However, the Trump Administration did not agree with the Iran deal and decided to exit the agreement. Unless a new deal is agreed upon, the US will impose sanctions that will make it hard for Iran to trade or to export oil. Matt Badiali states that the sanctions are to take effect in November and there will be a deficit of over two million barrels of oil a day. The top oil producers will not be able to come up with the missing oil to the global markets.

Matt Badiali does feel that China may play a role in keeping oil prices from rising too high. Currently, China and the United States are in an intense trade war with each other. China may try to undermine the United States in its attempt to put pressure on Iran. China is a major importer of Iranian oil and they plan on opposing any sanctions that the United States may place on Iran. Many analysts are worried that the trade war will eventually take its toll on the US and bring about a recession. This would lead to lower oil prices. To know more about him click here.

Matt Badiali feels that China will continue to undermine US policy if the trade war between the two countries continues. The United States exports a lot of oil to China; however, China could end up importing less oil from the United States and increase its imports from Iran. There are other nations that have openly criticized the United States for terminating the Iran nuclear deal and they plan to stand with China in opposing any sanctions placed on Iran.